Xiaomi has launched its personal loan service Mi Credit in India today. The platform will connect a Xiaomi user looking for a loan to a service that is best suited for his or her financial needs. Users of this app can avail loans ranging from Rs 1,000 to Rs 1 lakh. Customers who avail this loan can pay back the money in monthly instalments with an interest.
The company will not be lending the credit amount to Mi users but will only facilitate the connection between a loan seeker and the service provider. Xiaomi had soft-launched Mi Credit in May last year. It had then partnered with Bengaluru-based startup, KrazyBee.
Mi Credit features
Aditya Birla Capital Personal Finance, Money View, EarlySalary, CreditVidya and ZestMoney are the lending partners for Mi Credit. The company has stated that the application process for the loans is not more than 5 minutes. Xiaomi has also stated that the process is 100 per cent digital. Users would also get a free credit score on the app.
When it comes to one of the most crucial aspect – data protection – Xiaomi has said that data will be stored in an encrypted format. “Data privacy is of utmost importance to us, hence we have a data protection agreement with all our lenders and our data is stored in an encrypted format in Indian data centres,” it said.
The company also said that it has been running a pilot of Mi Credit and have disbursed more than Rs 28 crore of loans in November. “20 per cent of the loans disbursed were for the highest loan value,” it stated.
How to use Mi Credit
Interested users can download the app from the Google Play Store. Once done, you must register through your Mi account or phone number. You will have to upload the KYC documents including ID and address proof, which will undergo online verification. Once done, add bank details to facilitate the transactions.
If you are above 18 years of age then you can apply for loans up to Rs 1 lakh. The loans can be repaid with EMIs over a period starting from 91 days to 3 years. Interest rates on Mi Credit start at 1.35 per cent per month.